Avio S.p.A. (IT:AVIO)
:AVIO
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Avio S.p.A.
(AVIO)
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Rating:74Outperform
Price Target:
€36.00
▲(4.17% Upside)
Action:UpgradedDate:03/15/26
The score is driven primarily by strong financial resilience (very low leverage) and a sharp improvement in operating and free cash flow, supported by a constructive price trend above key moving averages. Offsetting these positives are thin, compressed margins and a negative P/E that weakens valuation clarity.
Positive Factors
Very low leverage
Extremely low debt-to-equity (~0.01) provides durable financial resilience for multi-year aerospace contracts. It reduces refinancing and interest-rate risk, preserves bidding flexibility on institutional programs, and supports sustained capital allocation to R&D and production even through industry cycles.
Negative Factors
Compressed margins
Thin gross and EBITDA margins limit the firm's ability to convert higher revenue into sustainable profits. In aerospace manufacturing, low margins increase vulnerability to cost overruns, pricing pressure on institutional contracts, and reduce buffer for cyclical downturns, constraining long-term returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage
Extremely low debt-to-equity (~0.01) provides durable financial resilience for multi-year aerospace contracts. It reduces refinancing and interest-rate risk, preserves bidding flexibility on institutional programs, and supports sustained capital allocation to R&D and production even through industry cycles.
Read all positive factors
Avio S.p.A. (AVIO) vs. iShares MSCI Italy ETF (EWI)
Market Cap
€1.58B
Dividend Yield0.41%
Average Volume (3M)656.74K
Price to Earnings (P/E)83.9
Beta (1Y)0.50
Revenue Growth32.64%
EPS Growth-38.77%
CountryIT
Employees1,352
SectorGeneral
Sector StrengthN/A
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.21
Shares Outstanding46,789,543
10 Day Avg. Volume749,352
30 Day Avg. Volume656,743
Financial Highlights & Ratios
PEG Ratio1.83
Price to Book (P/B)1.26
Price to Sales (P/S)1.48
P/FCF Ratio6.26
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€43.50Price Target Upside25.87% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.37
Revenue Forecast (FY)€604.70M
Avio S.p.A. Business Overview & Revenue Model
Company Description
Avio S.p.A., through its subsidiaries, engages in the design, development, and production of propellant propulsion systems for space launchers in Italy and internationally. It is involved in the design, development, and production of solid propell...
How the Company Makes Money
Avio makes money primarily by executing industrial contracts tied to European institutional space programs and launch-system supply chains. Key revenue streams include: (1) Manufacturing and delivery of propulsion hardware: Avio produces and suppl...
Avio S.p.A. Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
86
Very Positive
Cash Flow
88
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 593.83M | 483.99M | 343.70M | 73.22M | 324.14M |
| Gross Profit | 115.79M | 130.03M | 113.89M | 72.40M | 96.64M |
| EBITDA | 34.41M | 23.97M | 22.62M | 21.45M | 30.15M |
| Net Income | 10.48M | 6.09M | 6.49M | -435.00K | 8.48M |
Balance Sheet | |||||
| Total Assets | 1.66B | 1.09B | 1.06B | 1.29B | 1.24B |
| Cash, Cash Equivalents and Short-Term Investments | 601.85M | 101.68M | 95.59M | 131.40M | 104.61M |
| Total Debt | 10.14M | 11.59M | 19.46M | 56.95M | 47.45M |
| Total Liabilities | 955.58M | 779.52M | 744.75M | 982.10M | 926.12M |
| Stockholders Equity | 697.32M | 302.83M | 300.62M | 293.66M | 302.48M |
Cash Flow | |||||
| Free Cash Flow | 140.33M | 25.10M | 6.14M | 33.22M | 7.54M |
| Operating Cash Flow | 168.08M | 60.26M | 42.48M | 65.74M | 41.26M |
| Investing Cash Flow | -44.25M | -35.16M | -38.85M | -34.23M | -33.71M |
| Financing Cash Flow | 376.33M | -19.01M | -39.44M | -4.72M | -27.59M |
Avio S.p.A. Technical Analysis
Positive
34.56
Price Trends
35.11
Positive
32.86
Positive
31.15
Positive
Market Momentum
0.06
Negative
54.17
Neutral
83.80
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:AVIO, the sentiment is Positive. The current price of 34.56 is below the 20-day moving average (MA) of 35.44, below the 50-day MA of 35.11, and above the 200-day MA of 31.15, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 54.17 is Neutral, neither overbought nor oversold. The STOCH value of 83.80 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:AVIO.
Avio S.p.A. Peers Comparison
UnderperformOutperform
Sector (55)
IT:AVIO
Avio S.p.A.
34.56
20.16
140.00%
IT:FCT
Fincantieri S.p.A.
13.78
3.61
35.50%
IT:LDO
Leonardo Spa
56.31
12.58
28.76%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.